Friday, May 14, 2010

Shells (LSE:RDSA) Plan To Drill For Oil Is Getting A Lot Of Scrutiny

Pressure is mounting on Shell's (LSE:RDSA) plan to drill for oil this Summer. Environmental groups want to put these plans to a halt. Officials say the permits to allow this will be under careful safety reviews.

There will be no signing off on the permits until the federal review ordered by the president is completed.

Fourteen environmental groups have joined forces and sent a letter asking to reconsider Shell's approval. These groups are saying the MMS, the agency in charge of regulating drilling, didn't disclose or analyze the effects of a large oil spill when it was approved.

Shell officials have said the Artic drilling poses less of a threat of another spill. This is primarily because of the difference of geography.